EU proposes €4/kg subsidy cap for green hydrogen auction

Bidding developers must have pre-contractual arrangements in place with offtaker, equipment manufacturer and lender, as well as a ten-year renewable PPA, European Commission says in consultation

The European Commission has proposed an upper limit of €4/kg ($4.4/kg) for the fixed premium or contract for difference (CfD) potentially available to green hydrogen project developers bidding for subsidies via competitive pilot auctions due to launch in the autumn. Project developers must plan to produce the bid volume of hydrogen over a minimum of ten years, the Commission proposes in a consultation on the details of the auction. Projects must have a minimum 5MW of electrolyser capacity but are capped at bidding for 33pc of the auction round’s €800mn budget, according to the consultation. “Agreements with the power producer, offtaker and financer essentially need to be in place befor